I don't know the full story of how it happens that someone would sell their Bitcoin to treat a person battling illness, but as long as you're able to solve the problem after selling, it's fine. If you're serious about investing, it won't take long before you can get your Bitcoin investment back. Gradually, you'll be able to rebuild your portfolio.But what I would advise is: don't joke with your emergency funds. Always use discretionary income to invest in Bitcoin.
Money cannot bring someone back from the dead, no matter how rich you are, you cannot bring back the dead. So, if you sell your Bitcoin to treat yourself or someone who is sick, you have done nothing wrong, life is more precious than any investment.
If you have more money, you can continue to save or invest money in Bitcoin at any time. However, the life that was lost will never return, that is why it is normal to use your investment for medical or emergencies.
Youre also right about emergency funds. When we don't have emergency funds, we may be forced to sell our investment at a bad time or for a low price. This is why it's important to have an emergency fund apart from your investment funds.